A PROJECT REPORT On “E- RETAILING” MBA (Master of Business Administration) Submitted by HARSHA JAIKALYANI UNDER THE GUIDANCE OF PROF.ROOPESH RAO SUBMITED TODATTA MEGHE INSTITUTE OF MANAGEMENT AND STUDIES, ATREY LAYOUT, NAGPUR 2011-2013
INTRODUCTIONE-Commerce is a huge domain on conducting business over internet ande-retailing is part of it. When we discuss on digitally / Internet enabledcommercial transactions between organizations and individuals usinglatest web technologies as per the policies of the Organization it takesthe form of e-business. Nowadays, e is gaining momentum and most ofthe things if not everything is getting digitally enabled. Thus, it becomesvery important to clearly understand different types of commerce orbusiness commonly called as e-Commerce.There are mainly five types of e-commerce models Business to Consumer (B2C) This model involves organizations as businesshouses and consumers and customers. This is the most common modelin e-commerce. In this model, online businesses sell to individualconsumers. When B2C started, it had a small share in the market butafter 1995 its growth was exponential. In this business model thebusiness house will have a e-commerce website which will list all theirproduct categories with detailed information about products withphotographs, flash animation and comparing similar products etc., forquick decision making over web. E.g. An online Music portal sellingCD’s / DVD’s and streaming Audio on the web e.g. www.imusti.com. Business to Business (B2B) International Journal of Business Researchand Management (IJBRM),Volume(1):Issue(3) 106 It is the largest form of e-commerce involving business of trillions of dollars. In this form, the buyers andsellers are both business entities and do not involve an individual consumer. It islike the manufacturer supplying goods to the retailer or wholesaler. E.g.www.indiaplaza.in is a online store, which sells popular branded products toconsumer, where its supply chain network directlylinked to Manufacturer. HenceBusiness to business model.
Consumer to Consumer (C2C) E-Bay is an excellent example forthis model an auction site where a consumer can sell their antique or oldused items at discounted price to others, rest of the consumers who areall interested in those items will bid for that. This auction will happenfor a time period and ends; now the highest bidder will make paymentand buy the product. Here e-bay plays a role of having / facilitating aplatform to make consumer to consumer transactions. M-Commerce Now a day’s all business executives were busyand want to do financial transaction without going physically to bank.Example: Consumer want to pay their utility payments viz., Insurancepremium, Telephone bills, Income taxes etc., Transfer money toanybody in this world via mobile banking (e.g. ICICI Bank iMobile)opens up the new technology of ecommerce as Mobile commerce.Further the regular online stores were also optimizing their site userinterface design in order to make consumers shop from their mobiledevices viz., iPad, iPhone, Android enabled phones, and Microsoftwindows mobile 6.x enabled devices.There are other types of e-commerce business models too like Businessto Employee (B2E), Government to Business (G2B) and Government toCitizen (G2C) but in essence they are similar to the above mentionedtypes. Moreover, it is not necessary that these models are dedicatedlyfollowed in all the online business types. It may be the case that abusiness is using all the models or only one of them or some of them asper its needs.
Q1. What is E-Retailing?E-Retailing is the use of technology such as computersand the internet to sell a range of products and servicesonline to the world. E-RETAILING A BRIEFINGTo start an e-Retailing business, an organization or an individualshould have the below. 1. A Unique Idea / Product to sellWhen all Personal computer assemblers sell PC’s and Servers in atraditional way, Michael Saul Dell, founder CEO of Dell Inc., got aunique idea of selling PC’s over web. Beyond this he allowed users tochoose all components one by one based on their interests andrequirements and delivered a assembled PC over web, which was agrand success. 2. A Perfect Business PlanIs all about the e-Retailing business idea, Product or services, peopleinvolved, their expertise, a Project report with all standard projectedstatements prepared by a professional team, Competitor analysis, Capitalinvestment, Loans, Business location, Government regulations &policies, Technology plans, and IT infrastructure required. 3. Technology PlansOrganization may start off in a small way and then based on theresponse they can get more funding and grow in a big way.
• They need to finalize an attractive easy to remember domain name e.g.www.dell.com. International Journal of Business Research andManagement (IJBRM),Volume(1):Issue(3) 107• Need to finalize a hosting server to book web space from their variousplans e.g. www.Hostmonster.com to start with and later go for their ownscalable IT infrastructure setup based on the response and growth.• Need to Acquire IT team for developing e-Commerce website or tooutsource the work. Also we can think of using Open source like OSCommerce a popular e- Commerce application and Open source CRMapplication for customer relationship.• If we are going to develop from the scratch on our own technology, thebelow website development process will be followed as per Fig. 3. Website development process.• Compare and finalize Payment gateway based on their initial setup fee/ transaction fee the popular payment gateway service providers are CCAvenue, ICICI, Bill desk, Pay pal and few more players.• Once the website is launched, related internet marketing, popularlycalled as SEO (search engine optimization) work to be started toincrease the popularity and visitors of the site.• Plan and organize supply chain management to deliver product orservice to the online users who place orders.• Post sales support plans.
Q2. Which are the companies doing e-retailing and e-commerce? List of Top E-commerce Companies of India:Myntra.com:It is a leading online fashion store in India where you can find fashionable and trendy clothes formen, women and kids. You can buy apparels of different brands and avail discounts on theiroffers.Inkfruit.com:Buy apparels for guys and girls, accessories and footwear on this e-commerce website on thisAsia’s largest e-commerce website. They have the selective designs and give their customers thebest things.Dealsandyou.com:This site offers various kinds of deals be it holidays,shirts etc. Also this site gives heavydiscounts on regular basis that cab be profitable for the shoppers.Browse this site for more.eBay:eBay India is one of the largest online marketing site that offers diverse products. In most ofelectronic products EMI for 3 or 6 months is available with HDFC. They offer deals of the weekwith good discounts.Homeshop18:Homeshop18 is one of the largest electronic retailing companies of India which sells its productsthrough Internet, TV and mobile. If offers a diverse range of products including apparels,jewelry, books, home appliances, toys and electronic items. It has a customer base of over 5million and delivers products to more than 50 cities in India. With its highly user-friendlywebsite, it provides a completely hassle free shopping experience.Infibeam.com:Infibeam is an e-commerce website that sells almost everything online. You can search forbooks, mobiles, gifts, computers, games, watches, movies, electronics, home and lifestyle andmuch more. Also Infobeam offers hot deals on many products, so you can save a lot by orderingit through this site. You can also shop on EMI. Check out their magic box to know the deal of theday.
99labels.com:This site offers many fashion and luxury brands at good prices. Check this site for more brands.Rediff Shopping:Another online shopping where you can shop for wide variety of stuff is Rediff shopping. Therediff product catalogue contains more than 100,000 products. They have some of the best onlinedeals.Yebhi.com:This online e-commerce website is the baby of Big Shoe Bazaar India Pvt Ltd. It started itsonline store under the name of www.bigshoebazaar.com selling just the footwear. But with theimmense response, they added many other products such as accessories, apparels, bags, mobilesand jewelry in the product list. Yebhi is a winner of the Online Retail Awards 2011 HighlyCommended (Fashion,Clothing & Footwear) and Winner of - Economic Times - Best E-commerce Company - Award 2010.Zoomin:One of its own kind, Zoomin does not sell the products mentioned above for different e-commerce websites, but it allows you to create a photo album of your by uploading the pics.Then you can place the order to buy that unique, photo book of your. You can order for photoprints, canvas prints, collage, zig zag minis, photo mugs, calendars, greeting cards and moreproducts related to photos.20North.com:This website offers variety of products like electronics, books, music, movies, car accessories.The site also offers lucrative deals. Log onto the site to shop. Happy Shopping!!!Indiangiftsportal:This is known for providing gifts for various occasions like birthdays, anniversary, wedding,bhai dooj, diwali and many more. Also flowers, cakes, chocolates and many more things areoffered by this site. Browse it today to send gifts to your loved ones.MagazineMall:This company specifically deals in magazines and one can get magazines of different and uniquecategories like Gardening/Housekeeping, lifestyle, fashion, luxury, current affairs and manymore.
Bindaasbargain:Here new deal comes everyday at 10 am and it is Indias first One Deal A Day online shoppingsite. Check out the site for new deal.Buytheprice.com:The site offers Mobiles, Computers, Cameras, Home Appliances, Life style, Audio and Videoand much more. Variety of products are available under each category.Perfume2order:It has categories like Perfumes for Men, Perfumes for Women, Deodorants & Deo Stick,Perfume Gift Set, Designer Wallet & Belts, Flowers, Handbags & Clutches, Sunglasses andmany more things. To know more, check this site out.Timtara.com:It offers many products under each category. For example,computer category has products likeAntivirus, Blank CD/DVD, ePAD, Harddrives, Headphones, Keyboard, Laptops & Notebooks,Memory Cards, Mouse and much more.Browse this site for more categories and more products.Caratlane.com:CaratLane is Indias first and largest online diamond jewellery store. With a network of over4000 global vendors, CaratLane offers more than 1,00,000 loose diamonds, and over 1000 ready-to-choose diamond and gemstone jewellery like rings, pendants, earrings, bracelets and bangles.Every diamond sold at CaratLane is certified by internationally renowned labs like GIA, IGI,HRD and AGS, and their prices are up to 25% lower than other retailers in India.Naaptol:The site offers products like mobiles,cameras,laptops,jewellery,gifts and what not.check this site.Fernsnpetals:The Ferns N Petals (FNP) is known for good quality flowers & flower arrangements. It has beenclaimed that it is a leading Florist in India. Send the flowers to your loved ones from this site andgive happiness to them.
Q3. What are the new trends in e retailing? Top 6 online retail trends for 20121.) T-Commerce and M-Commerce retail therapy – In 2011 web enabled mobile devicestransformed E-commerce, opening up a new 24/7 channel to the consumer and creatinginnovative new ways to engage them, from QR codes to location based offers. In 2012 m-commerce will continue to gather momentum, but it is T-commerce that’s particularly exciting.The rich functionality of the tablet shifts the traditionally transactional and bargain huntingonline experience into a virtual store experience, making the web an almost tactile experience.For example, Rakuten’s BuyTV in the US and Rakuten SuperTV in Japan bring video reviews toenrich the tablet shopping experience. Better still, mobile commerce is not exclusively for bigbrands with big budgets. Better still, mobile commerce is not exclusively for big brands with bigbudgets. Thanks to affiliate services and marketplaces like Rakuten, merchants large and smallcan harness the mobile channel without incurring heavy infrastructure costs. Gartner estimatesthat by 2013, smart mobile web devices will overtake the total number of PC’s in use, exceeding1.8 billion. With 1.8 billion consumers just a click away this too big an opportunity for retailersto miss.2.) Bricks and mortar in the cloud – The boundaries between online and offline worlds arebecoming increasingly blurred, as retailers fuse their digital and real-world offerings. Barcodescanning services such as ShopSavvy help users find the best deal, by allowing them to scan thebarcode and search for better offers online. However, the challenge with these applications isthey fail to reward the store whose display instigated the purchase. To avoid cannibalising thehigh-street we believe a new system must emerge in 2012 that rewards offline and onlineecosystems.3.) Shopping with your social network– Getting a second opinion before committing to apurchase is nothing new, but now rather than taking a friend shopping you can take your entiresocial network with you. Retailers are becoming increasingly aware of the power of “the fan”and social will form an integral part of the E-commerce evolution in 2012. Data released in Julyby Hitwise indicated that 1 Facebook fan was equal to 20 additional visits to a retail website inthe course of a year. Retailers are now using social not just for brand awareness, but for productdevelopment and customer service too. Rakuten’s ShopTogether feature lets all merchantscapitalise on social service by enabling Rakuten marketplace users to invite friends to viewproducts and live chat whilst looking at the product page.4.) Borderless shopping communities – 2012 will see the rise of the local global e-marketplace.In 2012, international marketplace models will provide sellers of all sizes around the world withthe opportunity to expand their operations internationally, without the cost intensive outlaytraditionally associated with establishing local delivery models, storage facilities etc. Sellers willbe able to dabble in international shopping communities and dedicate resources based on realworld demand. This will open up opportunities with burgeoning markets, such as China, Indiaand Brazil. In late 2011 Rakuten surveyed international interest in shopping globally online andthe results revealed that consumers are open to borderless shopping. Brazil is leading the global
e-shopping charge with 81 per cent of consumers keen to shop in different markets online,followed by Indonesia (77%), Thailand (74%), China (69%) and Spain (66%).5.) Flexible, Local shipping models -According to a report by Forrester in January 2011,shipping issues were one of the most common reasons for cart abandonment in Europe. It’s truethat the internet has created a global marketplace, but local market shopping preferences must betaken into account. In Indonesia for example, locals are reluctant to pay online, to combat thisRakuten set up a shipping model, of local bike couriers, who collected payment on arrival. In2012, flexible shopping models will be vital for growth, as evidenced by the growing popularityof the click & collect phenomenon, which accounted for 10.4% of all E-commerce sales in theUK this Christmas according to the IMRG.6. ) Online shopping gets personal – The old adage “Information is power” takes on newimpetus in 2012 as retailers seek to capture the fickle attention spans of information savvyinternet shoppers. Gone are the days, when retailers tracked consumer behaviour based onloyalty points. Today’s online retailers can acquire huge volumes of data on both their potentialand existing customers based on user browsing habits alone. In 2012 data exchange betweenretailers and social networks will begin to provide solid business models for social platforms andoffer new insights into the psyche of the shopper. What matters most to retailers however is howtheir marketing teams translate this wealth of data into meaningful and timely communicationswith customers. The web generation is already jaded from a surfeit of push advertising, to trulyengage consumers in 2012 and beyond, retailers must learn how to harness user specific data toprovide timely, personalized and relevant communications.Commenting on the E-commerce industry in 2012, Adam Stewart, Marketing Director,Rakuten’s Play.com said: “In 2011 we barely scraped the surface of what’s possible with onlineretail. We are on the cusp of creating an experience-rich, 24/7 international shopping community.In the year ahead, cutting edge mobile devices, worldwide mobile and broadband penetration andinnovative social shopping services will open up global markets, providing huge growthopportunities for merchants large and small and unparalleled consumer choice.”
Q4. Various Business Models of E-Retailing?There are mainly five types of e-commerce models Business to Consumer (B2C) This model involves organizations as businesshouses and consumers and customers. This is the most common modelin e-commerce. In this model, online businesses sell to individualconsumers. When B2C started, it had a small share in the market butafter 1995 its growth was exponential. In this business model thebusiness house will have a e-commerce website which will list all theirproduct categories with detailed information about products withphotographs, flash animation and comparing similar products etc., forquick decision making over web. E.g. An online Music portal sellingCD’s / DVD’s and streaming Audio on the web e.g. www.imusti.com.Business to Business (B2B) International Journal of Business Researchand Management (IJBRM),Volume(1):Issue(3) 106 It is the largest form of e-commerce involving business of trillions of dollars. In this form, the buyers andsellers are both business entities and do not involve an individual consumer. It islike the manufacturer supplying goods to the retailer or wholesaler. E.g.www.indiaplaza.in is a online store, which sells popular branded products toconsumer, where its supply chain network directlylinked to Manufacturer. HenceBusiness to business model. Consumer to Consumer (C2C) E-Bay is an excellent example forthis model an auction site where a consumer can sell their antique or oldused items at discounted price to others, rest of the consumers who areall interested in those items will bid for that. This auction will happenfor a time period and ends; now the highest bidder will make payment
and buy the product. Here e-bay plays a role of having / facilitating aplatform to make consumer to consumer transactions. M-Commerce Now a day’s all business executives were busyand want to do financial transaction without going physically to bank.Example: Consumer want to pay their utility payments viz., Insurancepremium, Telephone bills, Income taxes etc., Transfer money toanybody in this world via mobile banking (e.g. ICICI Bank iMobile)opens up the new technology of ecommerce as Mobile commerce.Further the regular online stores were also optimizing their site userinterface design in order to make consumers shop from their mobiledevices viz., iPad, iPhone, Android enabled phones, and Microsoftwindows mobile 6.x enabled devices.There are other types of e-commerce business models too like Businessto Employee (B2E), Government to Business (G2B) and Government toCitizen (G2C) but in essence they are similar to the above mentionedtypes. Moreover, it is not necessary that these models are dedicatedlyfollowed in all the online business types. It may be the case that abusiness is using all the models or only one of them or some of them asper its needs.
Q4. Various payment Gateways of E-Retailing?Now the e-Retailers web site is ready with products listed and when theonline users orders the product online, the Retailers should link the Bankaccount with 3rd party payment gateway, to which the payment will becredited. Paypal Integration ICICI Credit Card Integration HDFC Credit Card Integration AXIS Credit Card Integration CCAVENUE Credit Card Integration EBS.in Credit Card Integration Authorize.net Payment Gateway integration Verisign PayFlow Payment Gateway integration PayPal Payment Gateway integration StormPay Payment Gateway integration 2CheckOut Payment Gateway integration iBill Payment Gateway integration FastCharge Payment Gateway integration Pay-Me-Now Payment Gateway integration LinkPoint Payment Gateway integration MoneyBookers Payment Gateway integration BluePay Payment Gateway integration GoMerchant Payment Gateway integration CC-Avenue Payment Gateway integration HDFC Payment Gateway integration ICICI Payment Gateway integration Axis Bank Payment Gateway integration SecPay Payment Gateway integration World Pay Payment Gateway integration Paypoint Payment Gateway integration
Q5. Advantages and Disadvantages of E-Retailing?Advantages The greatest and the most important advantage of e-commerce, is that it enables a business concern or individual to reach the global market. It caters to the demands of both the national and the international market, as your business activities are no longer restricted by geographical boundaries. With the help of electronic commerce, even small enterprises can access the global market for selling and purchasing products and services. Even time restrictions are nonexistent while conducting businesses, as e-commerce empowers one to execute business transactions 24 hours a day and even on holidays and weekends. This in turn significantly increases sales and profit. Electronic commerce gives the customers the opportunity to look for cheaper and quality products. With the help of e-commerce, consumers can easily research on a specific product and sometimes even find out the original manufacturer to purchase a product at a much cheaper price than that charged by the wholesaler. Online commerce also offers buyers a wider range of products and services to choose from, as opposed to conventional shopping, without the hassles of lugging around heavy shopping bags and getting stuck in messy traffic jams, which turns out to be more convenient and time-saving. Besides these, people also come across reviews posted by other customers, about the products purchased from a particular e-commerce site, which can help make purchasing decisions. For business concerns, e-commerce significantly cuts down the cost associated with marketing, customer care, processing, information storage and inventory management. It reduces the time period involved with business process re-engineering, customization of products to meet the demand of particular customers, increasing productivity and customer care service. Electronic commerce reduces the burden of infrastructure to conduct businesses like physical store setups and thereby raises the amount of funds available for profitable investment. It also enables efficient customer care service by collecting and managing information related to customer behavior, which in turn helps develop and adopt an efficient marketing and promotional strategy.
Disadvantages Electronic commerce is also characterized by some technological and inherent limitations which has restricted the number of people using this revolutionary system. One important disadvantage of e-commerce is that the Internet has still not touched the lives of a great number of people, either due to the lack of knowledge or trust. A large number of people do not use the Internet for any kind of financial transaction. Some people simply refuse to trust the authenticity of completely impersonal business transactions, as in the case of e-commerce. Many people have reservations regarding the requirement to disclose personal and private information for security concerns. Many times, the legitimacy and authenticity of different e- commerce sites have also been questioned. Another limitation of e-commerce is that it is not suitable for perishable commodities like food items. People prefer to shop in the conventional way than to use e-commerce for purchasing food products and objects that need to be felt and touched before actually making the purchase. So e-commerce is not suitable for such business sectors. The time period required for delivering physical products can also be quite significant in case of e-commerce. A lot of phone calls and e-mails may be required till you get your desired products. However, returning the product and getting a refund can be even more troublesome and time-consuming than purchasing, in case you are not satisfied with a particular product. Thus, evaluating the various pros and cons of electronic commerce, we can say that the advantages of e-commerce have the potential to outweigh the disadvantages. A proper strategy to address the technical issues and to build up customers trust in the system can change the present scenario and help e-commerce adapt to the changing needs of the world. Read more at Buzzle:
Q7.Buying behaviour and consumer behaviour of E-Retailing?Consumer Behaviour on the InternetThe Internet provides an information-rich environment offering to the consumers’ continuous up-to-date information, about different suppliers, products and/or services (Bruner, 1997; Chung-Hoon, 2003; Settles, 1995). As a result of the information available to the consumers and the easeof switching from one supplier to another, the power as Lindstrom (2002) argues has moved awayfrom the brand and onto the consumer. Previous researchers have studied aspects related to con-sumers’ behaviour online. For example, Rowley considered how consumers search the Web forinformation. Rowley (1996 and 2000), Morganosky and Cude (2000) studied the criteria of e-consumers’ selection of products; Merrilees and Fry (2002) studied how consumers develop brandattitudes about e-retailers. The factors determining the consumers’ purchasing decisions are chang-ing as they embrace e-commerce with expectations about efficiency, service and support. Notably,Schultz (2000) describes e-customer loyalty in cyberspace as an evolution from the traditionalproduct driven, marketer controlled concept towards a distribution driven, consumer controlled,and technology-facilitated concept. Hence, understanding the drivers and dynamics of how cus-tomer loyalty is developed and maintained in cyberspace is a critical tool for marketers developingfuture marketing strategies in this area (Gommans et al., 2001). Online brand loyalty There are a number of definitions of brand loyalty focusing on differentparameters such as behav-ioural and attitudinal brand loyalty (see East, 1990; Sheth et al., 1999; Webber, 1998). However,for the purpose of this study we use a definition of brand loyalty given by Dick and Bashu (1994)which conceptualises loyalty as the “strength of the relationship between an individual’s relativeattitude towards a brand and repeat patronage”.Customer loyalty has sometimes been operationalised as a behaviour (hard-core loyalty, repeatpurchase probability, and other) and at other times as an attitude (brand preference, commitment,intention-to-buy). As behaviour, customer loyalty has been measured as the long-term choiceprobability for a brand (Dekimpe et al., 1997; Jeuland, 1979), or as a minimum differential neededto prevent switching (Raju et al., 1990).Attitudinal approaches focused mainly on brand recommendations (Boulding et al., 1993), resis-tance to superior products (Narayandas, 1996), repurchase intention (Anderson and Sullivan,1993), and willingness to pay a price premium (Narayandas, 1996; Zeithaml et al., 1996).While academic research is continuously engaged in refining various conceptualisations for cus-tomer loyalty (see Jacoby and Chestnut, 1978; Kahn et al., 1986; Samuelson and Sandvik, 1997),much less attention has been paid to e-brand loyalty with some exceptions, such as: Gommans etal. (2001); Lodorfos et al. (2003); Lodorfos and Dennis (2005); Reichfeld and Schefter (2000),Ribbink et al. (2004) and Smith (2000).
Factors affecting the consumer’s online purchase decision Previous research into onlinebrand loyalty suggests that consumers weight differently the impor-tance of factors influencing their purchasing decisions in the online market than those in the tradi-tional shopping environments, which in turn may affect their e-brand loyalty. Factors that havebeen extensively covered in previous research as having a significant effect on the consumers’purchasing decisions online, are: beliefs about brand, price, trust, experience and convenience (seeChung-Hoon, 2003; Constantinides, 2004; Donthu and Garcia, 1999; Fayawardhena, 2003; Kunget al., 2002; Lodorfos et al., 2003; McCole, 2002; Quint, 1998; Retlev, 1991). In addition to theabove issues, time, ease and effort have also been identified as factors affecting e-purchase deci-sion (Devaraj et al., 2003). Price In addition to the rapid growth of the Internet population there has been an emphasis onInternet exchanges occurring at lower prices than in conventional outlets. In part this is assumed to bedue to the belief that a primary role of an online store is to provide price related information and prod-uct information to help reduce consumers’ search and purchasing costs (see Bakos, 1997; Kung etal., 2002; Phau, 2000). The belief that price is a primary purchasing determinant for online buyersis reinforced by the success of ‘auction sites’ (Kung et al., 2002). In addition, there is the percep-tion that the Internet will lead to increased price competition and the standardisation of prices es-pecially when products or services are incapable of significant differentiation (Jarvenpaa andTodd, 1997; Kung et al., 2002). However, a study by Brynjolfsson (2000) which considered pric-ing comparisons of CDs and books on the Internet to those offered by High Street stores identifiedthat whilst prices were between 9 and 16 per cent lower on the Internet, the online dispersion ofprices was high (25% for CDs and 33% for books). He also identified that those e-tailers of CDsand books with the lower prices did not make the most sales. This suggests that price may not al-ways be the determining purchase factor for e-consumers.Price incentives were notably the motivation for early e-shoppers expecting to find the lowestprices from e-tailers as a reward for their risk taking. This may be changing now because as Fay-awardhena (2003) identified the online prices have risen despite the fact that the purchasing cost isstill one of the customers’ key concerns. However, according to a number of studies previous ex-perience with an e-brand or value recognition of a product affects the consumers’ views about theimportance of the purchasing price (Fayawardhena, 2003; and Grunert, 2002). Trust and security
Currall and Judge (1995) defined trust as an individual’s reliance on anotherparty under condi-tions of dependence and risk. Considering that risk is a function of the probability thata hazard arises and the consequences of the hazard (Schneider, 1998), an individual’s trusting behaviourdepends on the nature of the consequences. In the context of high-consequence systems such as e-transactions, risk avoidance behaviour may arise. Convenience Studies investigating e-consumers motivations to purchase products online suggestthat conven-ience is a primary factor affecting e-consumers purchasing decision (Tracy, 1998). Thisfinding is supported by other research, which demonstrates that e-shoppers are convenience oriented(see Constantinides, 2004; Donthu and Garcia, 1999; Korganonkar and Wolin, 1999). There are a num-ber of definitions in the literature for convenience linked to e-consumers purchasing behaviour,however for the purpose of this study we focus on two aspects of convenience, e-satisfaction andease of use. Szymanski and Hise’s (2000) research suggests that site design and convenience havea significant influence on e-satisfaction levels. These findings are also supported by Brown et al.(2003) and Jiang and Rosenbloom (2005). Ease of use includes saving time, site design, site navigation,information architecture, site speed, ordering and payment process, accessibility and search facilities(Constantinides, 2004; Wolfin- barger and Gilly, 2001; Szymanski and Hise, 2000). According to Jiang andRosenbloom (2005), 73 percent of e-customers will leave an internet page and/or site if it takes morethan two to three clicks to get to where they want. Huber et al. (2001) as well as Jiang and Rosenbloom(2005) sug- gest that e-customers satisfaction criteria affect their purchasing attitude and their attitudeto the e-retailer. Therefore, satisfaction in this context is the consumer’s satisfaction based on ease ofuse criteria prior to the purchase (see Alba et al., 1997; Wolfinbanger and Gilly, 2001). In addition tosatisfaction and ease of use, convenience includes expectations, atmosphere, comfort, selectionand control as attributes (Walsh et al., 2003; Wolfinbarger and Gilly, 2001). Experience In the literature on e-commerce, there has been extensive research onconsumers’ shopping experi-ence and their evaluations based on perceptions concerning e-brands(Griffith et al., 2001; Jarvenpaa and Todd, 1997; Szymanski and Hise, 2000). Fry and Merrilees (2001)found that those consumers with high levels of perceived security risk were more likely to reduce theirlevels of risk perception via in-depth experience with the internet site. Experience has been recognisedas an important factor leading to brand loyalty, as a consumer’s experience with a brand will affect theattitudes that the consumer holds towards the brand as well as its intention to purchase from the brandin the future.
Q8.Various types of E-Retailing? The Five Different Types of E-CommerceBusiness to Consumer (B2C) B2C stands for Business to Consumer as the name suggests, it is themodel taking businesses and consumers interaction. Online business sells to individuals. Thebasic concept of this model is to sell the product online to the consumers.B2c is the indirect trade between the company and consumers. It provides direct selling throughonline. For example: if you want to sell goods and services to customer so that anybody canpurchase any products directly from supplier’s website.Directly interact with the customers is the main difference with other business model. As B2B itmanages directly relationship with consumers, B2C supply chains normally deal with businessthat are related to the customer.Business to Business (B2B) B2B stands for Business to Business. It consists oflargest form of Ecommerce. This model defines that Buyer and seller are two different entities. Itis similar to manufacturer issuing goods to the retailer or wholesaler. Dell deals computers andother associated accessories online but it is does not make up all those products. So, in govern todeal those products, first step is to purchases them from unlike businesses i.e. the producers ofthose products.“It is one of the cost effective way to sell out product through out the world”Benefits: Encourage your businesses online Products import and export Determine buyers and suppliers Position trade guidesConsumer to Consumer (C2C)
C2C stands for Consumer toConsumer. It helps the online dealing of goods or servicesamong people. Though there is no major parties needed butthe parties will not fulfill the transactions without theprogram which is supplied by the online market dealer suchas eBay.Peer to Peer (P2P) It is a discipline that deal itself whichassists people to instantly shares related computer files andcomputer sources without having to interact with centralweb server. If you are going to implement this model, bothsides demand to install the expected software so that theycould able to convey on the mutual platform. This kind of e-commerce has very low revenue propagation as from thestarting it has been tended to the release of use due to whichit sometimes caught involved in cyber laws.m-Commerce It deals with conducting the transactions withthe help of mobile. The mobile device consumers can interacteach other and can lead the business. Mobile Commerceinvolves the change of ownership or rights to utilize goodsand related services.
Q9.Diffrent between brick Retailing and Click Retailing?
Q10. What is finding, conclusion and future of E-Retailing?Now that we have reviewed all basic information about e-Commercespecific to e-Retailers and the challenges, advantages and disadvantages.From the government point of view, it has to take effective steps toresolve all barriers or disadvantages for e-commerce growth createopportunities for private, public participation in infrastructuredevelopment. Similarly all our public organizations should plan ahead totrain our Indian business community to learn more about the futurebusiness opportunities to compete global competition and towardsour countries growth. My future study is to plan, research and come outwith strategic plans which are more realistic, easy to adopt andimplement across the country which will resolve most of the prevailingissues.